Bank of England hints that interest rate rise is coming, sending pound soaring – business live

UK central bank predicts that some stimulus will probably be withdrawn “in the coming months”


My colleague Richard Partington has analysed the minutes of today’s Bank of England, and writes:

The Bank of England left interest rates on hold at their record low of 0.25% amid sluggish pay growth and a squeeze on household spending, while hinting that a rise may come sooner than expected.

The Bank’s monetary policy committee was split, with Michael Saunders and Ian McCafferty calling for an immediate rise to 0.5% to keep rising inflation in check. City economists had expected a vote of 7-2 to hold the rate steady.

Related: UK interest rates stay steady at record low of 0.25%

Speculation of a November interest rate hike has just pushed sterling up to a new one-year high against the US dollar.

One pound is now worth $1.3337, the highest level since September 2016, having gained more than a cent today.

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